The capital Market Authority organized a workshop on the importance of compliance with the disclosure provisions in stock markets on Tuesday with aim of  enhancing the disclosure culture in the market and boosting the awareness of issuers and insiders on the importance of compliance with disclosure rules and their responsibilities toward this issue to improve the level of transparency and disclosure in the stock market to upgrade market efficiency, at the businessmen Hall at CMA’s  building under the auspices of HE Sheikh Abullah Salim Al Salmi, Executive President of the Capital Market Authority and wide participation of compliance officers of issuers of securities and directors and compliance officers of investment fund and brokerage companies.

Ahmed Sulaiman Al Qassabi, Acting Director General of Issues and Disclosure opened the workshop by speech in which he said that regulation of stock markets have three main objectives according to IOSCO principles, namely investor protection, ensuring market fairness, efficiency and transparency and  reducing systemic risks.

Disclosure is the pillar  of each element which ensure investor’s ability to take informed and timely investment decision ensuring the fairness and soundness of the market. Efficiency of any market can be measured by the ability to show the prices which reflect the real economic values of the listed securities. When the disclosure principle falter the market transforms from a venue of investment into a gambling platform.

Al Qassabi added in his speech that poor compliance with disclosure and transparency and  negligence  in application was the reasons behind the major crisis in global stock markets during the past years which entailed review and  evaluation of the actual practices and legislations  regulating disclosure the transparency and the importance of compliance therewith in order to enhance the confidence of the  participants of the capital market to create healthy and attractive investment environment.

He added that deep belief on the part of the institutions concerned with disclosure and transparency principles is the importance of application of such principles to achieve fairness which is the core of ideal corporate governance.

Three working papers were presented in the workshop. The first paper was presented by Dr. Salah al Talib, Stock Markets Advisor of Muscat Securities Market who talked about the importance of disclosure and transparency in enhancing market efficiency as market efficiency depends on availability of timely, accurate and fair  information to investors provided they reflect real indicators on the reality of the issuers of securities, trading circumstances and the general position of the economy.

He focused on the accounting disclosure of issuers of securities such as the targeted category for accounting information, purpose of use of accounting information and the nature, quality, timing and method of disclosure of accounting information. He added that disclosure of accounting information goes beyond the financial statement to include  other information not mentioned in the statements.

Huda Rashid Al Ma’amari, Director of the Department of Disclosure reviewed the disclosure provisions for issuers of securities and responsibility of the issuers for disclosure process and disclosure provisions. She explained the concept of material information as well as the factors affecting  the market with regard to disclosed material information. She talked about the method of dealing with this kind of information if confidential and how to deal with rumors and published news.

Wafa Al Zadjali, Director of the Information Centre of MSM highlighted disclosure method in the MSM website and the electronic transmission system and its terms and conditions, and the method of disclosure of material information through the system beside detailed review of the material information required to be immediately disclosed by issuers.